Little Compromise in Sight on Payroll Tax Cut

As the deadline for a vote loomed, Congress remained deadlocked over a vote on the payroll tax cut, Jerry Seib reports on the News Hub. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

on ... the ... Jerry side ... out ... here ... where is it a year ... I wish I can help you out a limited ability to do that today ... it's worse that began in Washington ... what's happened is that the Senate ... it's really overwhelming bipartisan vote last week passed with everybody thought was going to be the deal the Giddis through this particular point on the payroll tax cut that every ... two month extension to keeps the payroll tax cut that was put in place ... as a stimulus measure ... a year ago in place for two more months while ... people figured out how to extend it for the full calendar year twenty twelve ... the assumption was the House of comeback this week ... and along with that ... what happened today was the House came back from Republicans revolted in the house instead recommend along the two month extension ... what a full-year expansion which actually everybody wants but nobody knows how ... to pay for the full year extension ... of the payroll tax cut so ... I'll Washington is once again so the stock of the game of chicken ... the prom with this game of chicken when he isn't over is actually moving into staring at each other ... it's not clear when or how far too soon to get this impasse was all ... if they don't get ... a start it doesn't give a soft ... anybody's taxes go up two percentage points ... on Jan going for ... it and Jerry I you mentioned that to the House members have devoted this down ... they're saying we don't want two month extension that says the band aid solution ... we wanna go before the full year to say that's what everybody wants to the real sticking point is exactly how to pay for it to St where are the differences there right now ... what that's been the subject of conversation for weeks now and there is to simply been in past Democrats wanted originally ... umpire millionaires tax a tax on people who earn million dollars the year or more to pay for the Republicans rejected that ... the conversation served lapsed into a service ... and the deal which ... some fees on new mortgages and ... refinance mortgages ... plus some spending cuts plus some of the revenue measures of wood would piece together and come up with the right amount of money to pay for this ... that that nobody is really quite agreed to that formula and that's where we end up with a two month extension ... if it did pay for had been agreed to if he was the ECB that the answer to get ... with the August cover stationed all this with an impasse for full-year ... weeks ago whenever they would be home shopping for Christmas but that's not what's happening so ... there's not an easy answer to Heidi pay for it because that's been the sticking point all was ... carrying the euro yesterday were from up the rise of independent voters that people are really that that they're fed up of all parties ... here again in another example of both these parties squabbling ... the brunt of the small issue this is not unusual for this and I would protect is a small payroll taxes small stimulus effort ... they can they can even get a simple thing like this done ... what is this do I mean I know Paulson's decision to calculating ... what the political fallout is going to be who's going to get worse ... write what well ... on today is a little different from some of these was that the past because this is not Republican one sided Democrats ... on one side is Republicans in the Senate and Democrats are all having agreed ... to meet human extension in the way was to be paid for ... and the people in the decider house that House Republicans alone so that is a little bit different ... you know Democrats are saying and they have a point ... in this case ... there was a bipartisan agreement there was the solution that everybody signed off on in the Senate and the White House ... Republicans and Democrats alike ... I think only seven Republicans in the Senate voted against the two month extension ... so what happened in this case was it was House Republicans ... to predict when those freshman Tea Party inspired House Republicans rose up and revolt so ... I if they feel isolated or not acting like it but I think others including the White House and Senate Democrats think they look pretty isolated in this case ... and maybe the pressures of the on them ... and to erase all the present Obama and speaker the house John Bater coming out right after the House did this but today each of them to so we know you know back to fourth with with garbage area Pres Obama saying Americans are time estimate the lots will be easier ... I John Binner saying you know were were trying to do so we're trying to do for the long ... haul we think of one on the PR front this afternoon when factoring in what folks are saying that the DC quarters right now ... well it as is true most these cases it really hard to know from sitting in Washington the answer that question I do think though the fact that there was um and that there was that a bipartisan vote in the sentiment a little harder ... for Republicans to sustain a position this project the case that has been true in some these other impasse is ... I think in this particular case um ... you know that this that the president is held by the fact that the that the Senate Republicans and Senate Republican leader ... Mitch McConnell actually one of the same solution ... to this problem ... and I don't know though whether it be simply stands at less that taxes go up on January first ... whether he can deflect the blame for that ... right now I think Republicans are are in a bit of a squeeze